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                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                 ---------------


                                    FORM 10-Q


                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


  For Quarter Ended June 30, 2000                Commission File Number 1-4456



                     TEXAS EASTERN TRANSMISSION CORPORATION
             (Exact name of Registrant as Specified in its Charter)

<TABLE>
<CAPTION>
<S>                                                           <C>
                   Delaware                                   72-0378240
(State or Other Jurisdiction of Incorporation)    (IRS Employer Identification No.)
</TABLE>

                              5400 Westheimer Court
                                  P.O. Box 1642
                             Houston, TX 77251-1642
                    (Address of Principal Executive Offices)
                                   (Zip code)

                                  713-627-5400
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes x  No
                                      ---   ---

The Registrant meets the conditions set forth in General Instructions (H)(1)(a)
and (b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced
disclosure format. Part I, Item 2 has been reduced and Part II, Item 4 has been
omitted in accordance with such Instruction H.

All of the Registrant's common shares are indirectly owned by Duke Energy
Corporation (File No. 1-4928), which files reports and proxy materials pursuant
to the Securities Exchange Act of 1934.

Indicate the number of shares outstanding of each of the Registrant's classes of
common stock, as of the latest practicable date:

Number of shares of Common Stock, $1 par value, outstanding at July 31,
2000..................................1,000

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<PAGE>
                     TEXAS EASTERN TRANSMISSION CORPORATION
                  FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2000
                                      INDEX

<TABLE>
<CAPTION>
Item                                                                                                        Page
----                                                                                                        ----

                          PART I. FINANCIAL INFORMATION

<S>    <C>                                                                                                  <C>
1.   Financial Statements....................................................................................1
     Consolidated Statements of Income for the Three and Six Months Ended June 30, 2000 and 1999.............1
     Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2000 and 1999...................2
     Consolidated Balance Sheets as of June 30, 2000 and December 31, 1999...................................3
     Notes to Consolidated Financial Statements..............................................................5
2.   Management's Discussion and Analysis of Results of Operations and Financial Condition...................6

                           PART II. OTHER INFORMATION

1.   Legal Proceedings.......................................................................................7
6.   Exhibits and Reports on Form 8-K........................................................................7

     Signatures..............................................................................................8
</TABLE>


SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995

From time to time, the Company's reports, filings and other public announcements
may include assumptions, projections, expectations, intentions or beliefs about
future events. These statements are intended as "forward-looking statements"
under the Private Securities Litigation Reform Act of 1995. The Company cautions
that assumptions, projections, expectations, intentions or beliefs about future
events may and often do vary from actual results and the differences between
assumptions, projections, expectations, intentions or beliefs and actual results
can be material. Accordingly, there can be no assurance that actual results will
not differ materially from those expressed or implied by the forward-looking
statements. Some of the factors that could cause actual achievements and events
to differ materially from those expressed or implied in such forward-looking
statements include state and federal legislative and regulatory initiatives that
affect cost and investment recovery, have an impact on rate structures and
affect the speed and degree to which competition enters the natural gas
industry; the weather and other natural phenomena; the timing and extent of
changes in commodity prices and interest rates; changes in environmental and
other laws and regulations to which the Company is subject or other external
factors over which the Company has no control; the results of financing efforts,
including the Company's ability to obtain financing on favorable terms, which
can be affected by the Company's credit rating and general economic conditions;
growth in opportunities for the Company; and the effect of accounting policies
issued periodically by accounting standard-setting bodies.
<PAGE>
                          PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

                     TEXAS EASTERN TRANSMISSION CORPORATION
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)
                                  (In millions)

<TABLE>
<CAPTION>
                                                        Three Months Ended          Six Months Ended
                                                              June 30,                   June 30,
                                                    -----------------------      ---------------------
                                                          2000         1999         2000        1999
                                                      ----------    ---------    ---------   ---------

Operating Revenues
<S>                                                     <C>          <C>          <C>          <C>
      Transportation of natural gas                     $ 180        $ 188        $ 371        $ 394
      Storage of natural gas                               18           16           37           33
      Other                                                29           13           57           24
                                                    ----------    ---------    ---------   ---------
           Total operating revenues                       227          217          465          451
                                                    ----------    ---------    ---------   ---------

Operating Expenses
      Operation and maintenance                            83           64          180          158
      Depreciation and amortization                        23           22           45           43
      Property and other taxes                             12           11           24           23
                                                    ----------    ---------    ---------   ---------
           Total operating expenses                       118           97          249          224
                                                    ----------    ---------    ---------   ---------

Operating Income                                          109          120          216          227

Other Income and Expenses                                   2            2            3            5
                                                    ----------    ---------    ---------   ---------

Earnings Before Interest and Taxes                        111          122          219          232

Interest Expense                                           27           27           54           53
                                                    ----------    ---------    ---------   ---------

Earnings Before Income Taxes                               84           95          165          179

Income Taxes                                               32           36           62           68
                                                    ----------    ---------    ---------   ---------

Net Income                                               $ 52         $ 59        $ 103        $ 111
                                                    ==========    =========    =========   =========
</TABLE>

                 See Notes to Consolidated Financial Statements.

                                       1
<PAGE>
                     TEXAS EASTERN TRANSMISSION CORPORATION
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                  (In millions)


<TABLE>
<CAPTION>
                                                                                   Six Months Ended
                                                                                       June 30,
                                                                                ----------------------
                                                                                 2000           1999
                                                                                -------       --------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                             <C>            <C>
      Net income                                                                $ 103          $ 111
      Adjustments to reconcile net income to net cash provided by
           operating activities:
                Depreciation and amortization                                      47             45
                Deferred income taxes                                              (6)             6
                Transition cost recoveries                                         45             45
                Net change in current assets and liabilities                      (40)            (2)
                Other, net                                                          9            (22)
                                                                                -------       --------
                     Net cash provided by operating activities                    158            183
                                                                                -------       --------

CASH FLOWS FROM INVESTING ACTIVITIES
      Capital and investment expenditures                                         (44)           (50)
      Net increase in advances receivable - parent                               (121)          (133)
      Retirements and other                                                         7              -
                                                                                -------       --------
                     Net cash used in investing activities                       (158)          (183)
                                                                                -------       --------

      Net change in cash and cash equivalents                                       -              -

      Cash and cash equivalents at beginning of period                              -              -
                                                                                -------       --------
      Cash and cash equivalents at end of period                                $   -          $   -
                                                                                =======       ========

Supplemental Disclosures
      Cash paid for interest, net of amount capitalized                         $  52          $  50
      Cash paid for income taxes                                                $ 120          $  98
</TABLE>

                 See Notes to Consolidated Financial Statements.

                                       2
<PAGE>
                     TEXAS EASTERN TRANSMISSION CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                                  (In millions)



<TABLE>
<CAPTION>
                                                                    June 30,        December 31,
                                                                      2000              1999
                                                                   (Unaudited)
                                                                   -----------      -----------
ASSETS

Current Assets
<S>                                                                 <C>              <C>
      Accounts receivable                                           $    89          $    83
      Inventory                                                          25               27
      Current portion of regulatory assets                               36               81
      Other                                                              72               29
                                                                   -----------      -----------
            Total current assets                                        222              220
                                                                   -----------      -----------

Investments and Other Assets
      Advances receivable - parent                                    1,388            1,267
      Goodwill, net                                                     144              146
                                                                   -----------      -----------
            Total investments and other assets                        1,532            1,413
                                                                   -----------      -----------

Property, Plant and Equipment
      Cost                                                            3,711            3,677
      Less accumulated depreciation and amortization                  1,094            1,054
                                                                   -----------      -----------
            Net property, plant and equipment                         2,617            2,623
                                                                   -----------      -----------


Regulatory Assets and Deferred Debits                                   131              138
                                                                   -----------      -----------



      Total Assets                                                  $ 4,502          $ 4,394
                                                                   ===========      ===========

</TABLE>

                 See Notes to Consolidated Financial Statements.

                                       3
<PAGE>
                     TEXAS EASTERN TRANSMISSION CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                       (In millions, except share amounts)


<TABLE>
<CAPTION>
                                                                              June 30,       December 31,
                                                                                2000             1999
                                                                            (Unaudited)
                                                                            -----------      -----------
LIABILITIES AND STOCKHOLDER'S EQUITY

Current Liabilities
<S>                                                                         <C>               <C>
      Accounts payable                                                      $    22           $    10
      Taxes accrued                                                             105               157
      Current maturities of long-term debt                                      210               200
      Other                                                                     126                98
                                                                            -----------      -----------
           Total current liabilities                                            463               465
                                                                            -----------      -----------

Long-term Debt
      Notes payable - parent                                                    605               605
      Other                                                                     341               351
                                                                            -----------      -----------
           Total long-term debt                                                 946               956
                                                                            -----------      -----------

Deferred Credits and Other Liabilities
      Deferred income taxes                                                     614               601
      Other                                                                     174               170
                                                                            -----------      -----------
           Total deferred credits and other liabilities                         788               771
                                                                            -----------      -----------

Common Stockholder's Equity
      Common stock, $1 par value, 1,000 shares authorized,
           issued and outstanding                                                 -                 -
      Paid-in capital                                                         1,482             1,482
      Retained earnings                                                         823               720
                                                                            -----------      -----------
           Total common stockholder's equity                                  2,305             2,202
                                                                            -----------      -----------

      Total Liabilities and Stockholder's Equity                            $ 4,502           $ 4,394
                                                                            ===========      ===========

</TABLE>

                 See Notes to Consolidated Financial Statements.

                                       4
<PAGE>
                     TEXAS EASTERN TRANSMISSION CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


Note 1. Nature of Operations

Texas Eastern Transmission Corporation (TETCO) is a wholly owned subsidiary of
PanEnergy Corp, which is an indirect wholly owned subsidiary of Duke Energy
Corporation. TETCO and its subsidiaries (the Company) are primarily engaged in
the interstate transportation and storage of natural gas. The interstate natural
gas transmission and storage operations of the Company are subject to the rules
and regulations of the Federal Energy Regulatory Commission (FERC).

The consolidated financial statements include the accounts of the Company and
all majority-owned subsidiaries. These consolidated financial statements reflect
all normal recurring adjustments that are, in the opinion of management,
necessary to present fairly the financial position and results of operations for
the respective periods.

Note 2. Related Party Transactions

Certain balances due to or from related parties included in the Consolidated
Balance Sheets at June 30, 2000 and December 31, 1999 are as follows:

-------------------------------------------------------------------------
 In millions
-------------------------------------------------------------------------
                                          June 30,        December 31,
                                           2000              1999
                                     ----------------- -----------------
Accounts receivable                         $ 4              $  7
Accounts payable                             14                 -
Taxes accrued                                65               113
------------------------------------ ----------------- ------------------

For the quarters ended June 30, 2000 and 1999, interest expense included $13
million and $12 million, respectively, of interest associated with notes payable
to parent. Interest for the six months ended June 30, 2000 and 1999 included $26
million and $23 million, respectively, of interest associated with notes payable
to parent.

Note 3. Gas Imbalances

The Consolidated Balance Sheets include in-kind balances as a result of
differences in gas volumes received and delivered. At June 30, 2000 and December
31, 1999, other current assets included $61 million and $22 million,
respectively, and other current liabilities included $55 million and $15
million, respectively, related to gas imbalances.

Note 4. Commitments and Contingencies

Litigation. The Company is involved in legal, tax and regulatory proceedings
before various courts, regulatory commissions and governmental agencies
regarding performance, contracts and other matters arising in the ordinary
course of business, some of which involve substantial amounts. Where
appropriate, the Company has made accruals in accordance with Statement of
Financial Accounting Standards No. 5, "Accounting for Contingencies," to provide
for such matters. Management believes that the final disposition of these
proceedings will not have a material adverse effect on consolidated results of
operations or financial position.

Other Commitments and Contingencies. In 1993, the U.S. Department of the
Interior announced its intention to seek additional royalties from gas producers
as a result of payments received by such producers in connection with past
take-or-pay settlements, buyouts and buydowns of gas sales contracts with
natural gas pipelines. The Company, with respect to certain producer contract
settlements, may be contractually required to reimburse or, in some instances,
to indemnify producers against such royalty claims. The potential liability of
the producers to the government and of the pipelines to the producers involves
complex issues of law and fact which are likely to take substantial time to
resolve. If required to reimburse or indemnify the producers, the Company will
file with FERC to recover a portion of these costs from pipeline customers.

                                       5
<PAGE>
Periodically, the Company may become involved in contractual disputes with
natural gas transmission customers involving potential or threatened abrogation
of contracts by the customers. If the customers are successful, the Company may
not receive the full value of anticipated benefits under the contracts.

Management believes that these commitments and contingencies will not have a
material adverse effect on consolidated results of operations or financial
position.

Note 5. New Accounting Standard

In December 1999, the Securities and Exchange Commission (SEC) released Staff
Accounting Bulletin No. 101 (SAB 101) which provides the SEC staff's views on
revenue recognition policies. The Company has adopted the provisions of SAB 101
as of April 1, 2000. The impact of adopting SAB 101 was not material to the
Company's financial position or results of operations.

Item 2. Management's Discussion and Analysis of Results of Operations and
Financial Condition.

INTRODUCTION

Texas Eastern Transmission Corporation (TETCO) is a wholly owned subsidiary of
PanEnergy Corp, which is an indirect wholly owned subsidiary of Duke Energy
Corporation. TETCO and its subsidiaries (the Company) are primarily engaged in
the interstate transportation and storage of natural gas for customers primarily
in the Mid-Atlantic and New England states. The interstate natural gas
transmission and storage operations of the Company are subject to the rules and
regulations of the Federal Energy Regulatory Commission.

RESULTS OF OPERATIONS

Net income for the six months ended June 30, 2000 was $103 million compared to
$111 million for the same period in 1999. The decrease was mainly attributable
to 1999 results reflecting a $28 million operating expense benefit related to
the completion of certain PCB (polychlorinated biphenyl) soil clean-up programs
below estimates. Increased operating revenues due to other service activities
partially offset this decrease.

LIQUIDITY AND CAPITAL RESOURCES

Capital and investment expenditures for the first six months of 2000 and 1999
totaled $44 million and $50 million, respectively. Projected 2000 capital and
investment expenditures, including allowance for funds used during construction,
are approximately $112 million, with market-expansion expenditures approximating
25% of the capital budget. These projections are subject to periodic review and
revision. Actual expenditures incurred may vary from estimates due to various
factors, including business expansion opportunities and environmental matters.
Expenditures for 2000 are expected to be funded by cash from operations and/or
collection of intercompany advances receivable.

The Company has $210 million of long-term debt due in 2000. Management believes
that it will be able to refinance this debt on favorable terms.

CURRENT ISSUES

Environmental Matters. Air Quality Control. In October 1998, the Environmental
Protection Agency (EPA) issued a final ruling on regional ozone control that
requires revised State Implementation Plans (SIPs) for 22 eastern states and the
District of Columbia. This EPA ruling was challenged in court by various states,
industry and other interests, including the Company. In March 2000, the court
upheld most aspects of the EPA's rule. Petitioners have asked the court to
rehear the case and overturn the March decision, but in June the court declined
to rehear the case and lifted its earlier stay of the state's obligation to
revise their SIPs. Industry and state petitioners have not decided at this time
if they will continue to seek review of the rule. The EPA has undertaken other
ozone-related actions having virtually identical goals to its October 1998
action. These actions have likewise been challenged in court by the same or
similar parties. The final resolution of the October 1998 action is expected to
resolve these other ozone-related actions as well. Depending on the resolution
of these matters, costs to the Company may range up to $10 million for
additional capital improvements.

                                       6
<PAGE>
PART II. OTHER INFORMATION


Item 1. Legal Proceedings.

For information concerning material litigation and other contingencies, see Note
4 to the Consolidated Financial Statements.


Item 6. Exhibits and Reports on Form 8-K.

(a) Exhibits

    (27) Financial Data Schedule (included in electronic filing only)

(b) Reports on Form 8-K

    The Company filed no reports on Form 8-K during the second quarter of 2000.

                                       7
<PAGE>
                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                           TEXAS EASTERN TRANSMISSION CORPORATION



August 9, 2000             /s/ Dorothy M. Ables
                           --------------------
                           Dorothy M. Ables
                           Senior Vice President, Finance and Administration and
                           Chief Financial Officer


                                       8